Part 18Transactions in land
Exemptions
827Gain attributable to period before intention to develop formed
1
This section applies if—
a
income is treated as arising because the condition mentioned in section 819(2)(d) is met (land developed with sole or main object of realising a gain from its disposal when developed), and
b
part of the income is fairly attributable to a period before the intention to develop was formed.
2
No liability to corporation tax arises as a result of this Part in respect of that part of the income.
3
In applying this section account must be taken of the treatment under Part 3 of CTA 2009 (trading income) of a company which appropriates land as trading stock.
828Disposals of shares in companies holding land as trading stock
1
No liability to corporation tax arises as a result of this Part in respect of a gain on property deriving value from land if—
a
the gain is obtained by the holder of shares,
b
the gain arises as a result of the holder of shares falling within section 820(1)(a) or (b) (persons acquiring, holding or developing land and connected persons), and
c
the circumstances are such as are mentioned in subsections (2) and (3).
2
The gain arises on a disposal of shares in—
a
a company which holds that land as trading stock, or
b
a company which directly or indirectly owns at least 90% of the ordinary share capital of another company which itself holds that land as trading stock.
3
All the land so held is disposed of—
a
in the normal course of its trade by the company which holds it, and
b
so as to procure that all opportunity of profit in respect of the land arises to that company.
4
This section does not affect any liability as a result of any person falling within section 820(1)(c) (parties to arrangements and schemes, etc).